Where do I go?

Question

Hello everyone!

I am looking for insight/advice/ideas on where to go or what to do next in my investment journey.

I currently live in Nashville TN. I am a real estate agent here and currently live in my home that I have renovated.

Background: I have typically done the BRRR method. My first one was in Colorado Springs, My second home was in MT, and now my current home outside of Nashville. My current home is ready to rent and I am ready to move onto the next phase. My problem is that I would love to scale my business. I enjoy fixing up homes and working as an agent as well. Nashvilles market is insane and the BRRRR method just does not work with rates. Most surrounding areas are just as expensive. So the only options are to house hack or buy and sell- which isn't honestly the best idea right now.

So, should I try to house hack in/around Nashville- or move to a different market where I would be able to move quicker or have better opportunities. I am totally open to relocating. Thoughts?

I do work a full time job which is my primary income as well.

Henry Clark · Answer

Good time to stop and get some sticky notes. Start writing the following and put up in a board.1. Cash available. Or equity.2. Financing downpayment %.3. 1 and 2 above determine your deal size4. Your skill sets and resources.5. What makes you tick6. Family situation7. Job situation8. Financial targets and timelines.9. The tools and team you will need to scale.10. Your marketWith those up in the board now look for an REI type that works. You can have both cash snowball and Longterm cashflow/appreciation models.So here are some examples which won’t be right for you unless they happen to fit the above.1. Stick with your BRRR expertise but upsize. Might need to rent out rooms to help in the larger PI payments. TravelingNurses. Keep using your 2/5 primary no tax up to $250,000 and your basic rent offset cost for the investment.2. Do ADU or value add. Value add could be as simple as buying a house with 5 acres and lotting off some of the acres.3. Use very localized market locations to raise your ship. Find new developments and buy their demo homes or premium lots. Once that development starts to infill prices will rise. 4. Land development. Look at loopnet example Polly road, 3 acres, $165,000. Can you split and sell for $100,000 per acre? Or we do larger lots. 80 acres at $9,000 and then sell at $50,000 to $100,000 per acre. Country subdivision. No houses. No hard surface roads or sewer water. 5. Look for Nasty properties. That is where we make most of our money. Example flat roofed churches or old elementary schools. People see a nasty property. A church or a school. My buddy sees easily renovated rental space. 6. Nasty property. Look for a wet or low spot or look for a high spot. Talk with local excavators. Tell them they can put “clean fill” in the low spot or they can buy dirt from the high spot. Or if you own both a low and a high spot close by, offset them. Trucking is the major cost. You are saving them or you trucking cost and making money on the real estate.7. We do Selfstorage. Sell your real estate and build a storage location. Put $60,000 into a 1,200 sq ft managers office where you will live. Your house is now making you money. All of your living expenses are now deductible. Property tax, insurance, electric, water hose and shovel, flowers, etc. Ugly place to live? No. Marble countertops, tile floor, touch screen bathroom mirror, etc etc. Most of the above won’t work for you. The point is look for something where you will have an unfair advantage. All of the other investors are looking for that same 3/2 at the right price they can make money on and your bidding against each other. Do this. Look for a Nasty property. Doesn’t mean dirty. That has been listed for a while. Come back and say what do you see?

Wale Lawal · Answer

@Kyanne MaderTo expand your property investment venture, contemplate property slicing in Nashville, examine adjacent markets, moving to an alternative market, varying investment tactics, and connecting with other financiers. Analyze the possibility of property slicing in Nashville, scrutinize neighboring markets, and explore financing alternatives like FHA loans. If the Nashville market proves to be too demanding, ponder moving to a different market with superior opportunities. Broaden your investment tactics beyond the BRRRR approach, consider purchasing and holding properties, and evaluate your tolerance for risk and long-term investment goals. Connect with other financiers and specialists to combine resources and pursue larger investment prospects.Good luck!